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ARIZONA STATE SENATE
Fifty-Fifth Legislature, First Regular Session
AMENDED
marijuana; advertising; labeling; signage; sale
Purpose
Outlines labeling and advertising requirements and prohibitions for marijuana establishments and nonprofit medical marijuana dispensaries (dispensaries). Contains requirements for enactment for initiatives and referendums (Proposition 105).
Background
In 2010, Arizona voters approved the Arizona Medical Marijuana Act to establish a regulatory system, overseen by the Department of Health Services (DHS), that allows a dispensary to dispense a permissible amount of medical marijuana to a qualifying patient or the qualifying patient's designated caregiver. Additionally, in 2020, Arizona voters approved the Smart and Safe Arizona Act, which established a regulatory framework for the adult recreational use of marijuana. DHS must adopt rules to implement and enforce statutory requirements for the adult use of marijuana, including rules relating to: 1) the licensing of marijuana establishments and marijuana testing facilities; 2) the security of marijuana establishments and marijuana testing facilities; and 3) the tracking, testing, labeling and packaging of marijuana and marijuana products.
In Arizona, marijuana establishments and dispensaries are authorized to engage in hosted advertising only if the advertising: 1) is authorized by a marijuana establishment or dispensary; and 2) accurately and legibly identifies the marijuana establishment or dispensary responsible for the content of the advertising by name and license number or registration number. Any advertising involving direct, individualized communication or dialogue must use a method of age affirmation to verify that the recipient is 21 years old or older prior to engaging (A.R.S. § 36-2859).
With regard to packaging of marijuana products, marijuana establishments are prohibited from: 1) packaging or labeling marijuana or marijuana products in a false or misleading manner; 2) manufacturing or selling marijuana products that resemble the form of a human, animal, insect, fruit, toy or cartoon; and 3) selling or advertising marijuana or marijuana products with names that resemble or imitate food or drink brands marketed to children, or otherwise advertise marijuana or marijuana products to children. Any marijuana establishment that violates packaging and advertising requirements is subject to disciplinary action by DHS (A.R.S. § 36-2860).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Requires marijuana establishments to display, in a conspicuous location, a sign that warns pregnant women about:
a) the potential dangers to fetuses caused by smoking or ingesting marijuana while pregnant and to infants while breastfeeding; and
b) the risk of being reported to the Department of Child Safety (DCS) and at the birth of the child by individuals who are required to report.
2. Stipulates that DHS rules must include specific warning language to be displayed on any sign that warns women about the dangers of smoking or ingesting marijuana while pregnant or breastfeeding.
3. Requires marijuana establishments to label all marijuana and marijuana products at a retail site with a prescribed warning regarding pregnant and breastfeeding women.
4. Prohibits a marijuana establishment retail site from providing samples of marijuana or marijuana products for on-site use and at no cost to a consumer.
5. Prohibits marijuana establishments from selling marijuana or marijuana products to persons who are obviously intoxicated.
6. Defines obviously intoxicated as individuals affected by alcohol or drugs to such an extent that a person's physical faculties are substantially impaired and the impairment is shown by significantly uncoordinated physical action or significant physical dysfunction that would be obvious to a reasonable person.
7. Restricts marijuana establishments and dispensaries from:
a) advertising marijuana and marijuana products to individuals under the age of 21 years old;
b) using
content, animation or graphics designed to attract or target individuals under the
age of 21 years old;
c) displaying images of a marijuana leaf or bud, or the use of marijuana; and
d) sponsoring any athletic, musical, artistic or other social or cultural events or any entry fee or team in any event.
8. Prohibits billboard advertisement within 1,000 feet of the following, if the billboard is in the line of sight:
a) child care centers;
b) churches;
c) public parks;
d) public playgrounds;
e) public or private schools that provide preschool instruction, instruction in kindergarten programs or instruction in any grades 1 through 12.
9. Provides a 30-day period for individuals in violation of billboard advertisement restrictions to come into compliance.
10. Clarifies that marijuana establishments and dispensaries are not precluded from making charitable contributions without brand acknowledgement or hosting events for member of the marijuana industry.
11. Permits an advertising platform to host advertising only if the advertising discloses that marijuana products can only be purchased, possessed and consumed by individuals who are at least 21 years old.
12. Makes technical changes.
13. Requires for enactment the affirmative vote of at least three-fourths of the members of each house of the Legislature (Proposition 105).
14. Becomes effective on the general effective date.
Amendments Adopted by Committee of the Whole
1. Prohibits the advertisement of marijuana and marijuana products to individuals under 21 years of age, and prohibits the display of images of marijuana leaves, marijuana buds and marijuana use.
2. Prohibits the placement of billboards that advertise marijuana within 1,000 feet of childcare centers, churches, public parks, playgrounds and schools.
3. Provides a 30-day compliance period for billboard advertisement violations.
4. Specifies that marijuana establishments and dispensaries can make charitable contributions without brand acknowledgement or hosting marijuana industry events.
House Action Senate Action
HHS 2/15/21 DP 8-0-0-1 HHS 3/17/21 DP
3rd Read 2/23/21 57-2-1
Prepared by Senate Research
May 20, 2021
CRS/AP/kja